What is critical illness insurance?

If you are lucky, you will not need to ever use critical illness insurance.

If you are ever diagnosed with cancer, heart attack or any such severe medical conditions, critical illness insurance may be one of the only things protecting you and your family from financial ruin.

This insurance plan provides coverage for severe or critical medical emergencies. Since these emergencies tend to incur greater than usual medical costs, this policy can pay out the overruns that traditional insurance cannot cover.

This way you can focus on your recovery knowing that your expenses are covered.

How can critical illness insurance help?

1. Lump-sum payout – With this insurance policy, you receive a lump sum payment that can be used to cover your medical costs, including medical care, travel expenses or wages of a family member leaving work to help. This insurance plan pays you cash benefits when you are diagnosed with a specified covered illness, which in turn can help alleviate some of the stress that you are already facing.
2. Tax-free payout – You will receive a one-time benefit payment that you can use for any expenses that needs to be covered.
3. Low cost – These insurance policies are generally less expensive than traditional insurance plans. However, please note that each plan may cover only certain specified illnesses. So it is important that you review the terms, conditions, exclusions and limitations carefully.
4. Peace of mind – With this insurance policy, you can focus on your recovery without the added stress of financial instability. You no longer have the dilemma of choosing between what’s best for your family and what’s best for you.
5. Additional support – In addition to covering the costs for your treatment, you can even use the benefits to help and support your family. The plan can cover counselling services, family support services, child care services, legal consultations and nutritional advice.
6. Protect your savings – You need not dip into your retirement or personal savings to cover for your medical expenses with this policy.

What does critical illness insurance cover?

There are around 26 illnesses listed by the Canadian Life and Health Insurance Association. Depending on the policy and insurance provider, the plan can cover anywhere between one major illness to all 26 medical conditions. Some plans even offer coverage for other medical conditions.

It is advisable that you go through the policies carefully to find one most suitable for you. Feel free to contact us for more information or for assistance. You can rest assured that we will be there for you.